senate inquiry on cattle theft

MIS cattle duffing scam exposed
LUCY KNIGHT
31/08/2009 2:56:00 PM
ALLEGATIONS that a major cattle duffing cattle "scam" has taken place within a managed investment scheme were aired during a Senate inquiry in Canberra today.
A Senate Select committee looking into the impact of managed investment schemes on food security was told of a cattle investment project, managed by the now collapsed Great Southern, which enabled investors to lease cattle and own the progeny as part of a herd managed by the group.

MIS have come under sharp scrutiny in recent months following the failure of two of the biggest groups, Timbercorp and Great Southern.

Melbourne-based financial advisor, Janette Townshend, told the hearing that following some "measly" returns and the collapse of Great Southern it was now becoming apparent that investors were paying for cattle that may not exist.

Ms Townshend gave examples of cattle identification not being done properly, identification tags being removed or "swiped several times" and National Livestock Identification tags being "thrown down wells".

It's believed the allegations relate to tens of thousands of cattle being run on properties predominantly in the Northern Territory, Far North Queensland and on Tasmania's King Island.

Ms Townshend said there were now legal title issues in the wake of the collapse and she urged administrators, McGrath Nicol, to stop the sale of any cattle until these matters were resolved.

She also called for McGrath Nicol to be removed as receivers, alleging also that one of the people assigned to help wind up the cattle project was one of the project's former managers.

Chair of the committee, Bill Heffernan, said he had evidence pointing to the MIS being "a complete con", arguing the bulk of the cattle meant to be on these investment places "not there".

He called it one of the "biggest scams of all time".

He said officers from the RSPCA, charged with occasionally checking on these animals' welfare, had told him that they had only sighted 10 per cent of the cattle on the books.

"How will we ever know whether the cattle leased ever existed?" Senator Heffernan asked in the committee.

There are already believed to be police investigations underway in Queensland and Senator Heffernan has called on the Australian Federal Police to also investigate the allegations.